Tax of cash bought in from the UK
 

Hi all,

Me and my family are moving to the US soon and will have around 25k in savings which we will eventually transfer to a US bank account.

Someone told me that they were told (already sounds suspect) that the US take 50% of any money you bring into the US, in tax. This just sounds ridiculous but thought id ask anyway as i dont want any sudden surprises.

Either way, will we need to pay any tax on money bought in?

Thanks

Re: Tax of cash bought in from the UK
 

No. Whoever told you that was talking utter twaddle.*

To be clear "cash" over $10,000 has to be reported at the port of entry, and wires over $10,000 are also reported (automatically by the bank receiving the wire), but there are no taxes. I strongly recommend that you do not bring cash, but transfer the money electronically.

* Some people might be paying 50% to get their large cash stash into the US banking system. I hope your circle friends does not include such people. :eek:

Re: Tax of cash bought in from the UK
 

+1 on the "utter twaddle"

There is no tax on the transfer of money. You will be liable for US tax on any interest your money earns after you become a US resident though.

Re: Tax of cash bought in from the UK
 

Thank you, i figured it was nonsense.
Some people are just nut cases. :)

Re: Tax of cash bought in from the UK
 

Don't forget to set up your foreign exchange service in advance and compare what you will get and how much their fees are before signing up. Using companies like transferwise and worldfirst means you usually get a much better exchange rate with little or no fees. Most of us on here use a company like this.

Whatever you do, don't just take the cash to your bank in the USA because you will be completely at their mercy! Even transferring the money through the bank system check very carefully the rates and fees. Wells Fargo for example will offer you "their" rate which one of their managers told me is often 4% below market rate and on thousands of dollars this makes a noticeable difference. He told me it is the biggest cause of problems for him with his international customers.

Re: Tax of cash bought in from the UK
 

"Offer" :rofl: ..... The same sort of offer you would get from the mafia. :nod:

Re: Tax of cash bought in from the UK
 

I find it slightly amusing that their logos/mascot is a wildwest stage coach and horses. Is it just me that immediately thinks of highway robbery????

Re: Tax of cash bought in from the UK
 

In all the westerns I ever saw, the stagecoach was occupied by the victims, as were stagecoaches in the UK, robbed by Dick Turpin and his ilk.

Re: Tax of cash bought in from the UK
 

that'll be the customers then?

Re: Tax of cash bought in from the UK
 

I thought of that as I hit <reply>. :lol:

Still, through quirk of history, the coolest marketing tool of any bank that I know of - similar to the Budweiser clydesdales. I have seen the WF stagecoach a couple of times here in NC.